I have done the 1023 a couple of times....You are not "disbursing...for the benefit of members" when you reimburse someone.
I'm not so sure about the professional services fees. You might be expected to complete a 1099 for those performers if you also classify them on line 22. When I've completed the form, I've viewed professional fees as accountants or lawyers (which we have none).
PTO Today DOES have a detailed resource for completing the 1023 line by line, question by question, specifically for a PTO. It's in the Start-Up Guide which is included with Plus membership , I think. I think you can also buy it outright. There's loads of useful info in there.
I have never filed out a 1o23 but I do know that there is a huge difference between reimbursing members for expenses and "Disbursements to or for the benefit of members". You don't want to confuse the two and you don't want the IRS thinking that you disburse funds to benefit your members. A big no- no!!
Hi -
I'm having trouble classifying my PTO's expenses according to the little boxes on Form 1023 (501(c)(3) application).
For example: we reimburse members for expenses, so do I need to list every check and recipient on the list for Part X, A, line 16: "Disbursements to or for the benefit of members (attach an itemized list)" ?
We pay for special guests at the school (authors, artists, craftsmen, etc.). Are these considered "Professional fees" for line 22? The instructions for Form 1023 say "Professional fees are those charged by individuals and entities that are not your employees. They include for ... any independent contractor."
It would be great if this site could provide a few examples of where certain typical PTO expenses get filled in.
